Trump pardons Changpeng Zhao, Binance may return to the United States, changing the landscape of the U.S. digital currency market

# By: Long Yue  

# Source: Wall Street Insights  

A presidential pardon has thrust Binance, the world’s largest cryptocurrency exchange, and its founder Changpeng Zhao back into the spotlight of the U.S. market. This move not only triggered a surge in the price of Binance’s native token BNB but also sparked intense discussions about Binance’s potential return to the U.S. market— a development that could reshape the competitive landscape of America’s digital asset market.  

On Thursday local time, Wall Street Insights reported that White House spokesperson Levitt stated:  

“U.S. President Trump, exercising the authority vested in him by the Constitution, has issued a pardon to Mr. Zhao. He was among those prosecuted by the Biden administration in its so-called ‘cryptocurrency war’… The Biden administration’s war on cryptocurrencies is over.”  

Trump himself told reporters that Changpeng Zhao was recommended for a pardon by many people, and he believed Zhao was innocent.  

“Many people advised pardoning him; many said he had committed no crime at all… He was just persecuted by the Biden administration, and that is not a crime.”  

Following the news of the pardon, the price of BNB— the primary trading token on Binance’s platform— surged by as much as 8% at one point. This upward momentum spread to the broader crypto market: Bitcoin, the market’s bellwether, rose by 3%, while Ethereum climbed by 3.7%, reflecting investors’ positive response to the news.  

This dramatic turn of events quickly focused market attention on the possibility of Binance returning to the U.S. market. Back in 2023, Binance admitted to violating U.S. anti-money laundering laws, paid a fine of up to $4.3 billion, and was subsequently banned from operating in the United States. Changpeng Zhao himself also served nearly four months in prison in 2024 due to this case. The pardon is now seen as removing a major legal obstacle facing both him personally and Binance.  

## Market’s Optimistic Reaction; Binance: “Grateful to the President”  

The most immediate impact of the pardon was felt in the market. Jaime Baeza, Managing Partner of crypto hedge fund AnB Investments, stated that the news had triggered a “relief rally.”  

Adam McCarthy, Research Analyst at Kaiko, also noted that BNB outperformed other assets because the pardon “eliminated a potential overhang for Binance and its co-founder.”  

Data shows that BNB is the third-largest cryptocurrency globally (excluding stablecoins), trailing only Bitcoin and Ethereum, with a market capitalization of $157 billion. Changpeng Zhao has also been actively involved in the development of the BNB blockchain recently, and his family office, YZi Labs, has invested in multiple digital asset companies that hold BNB tokens.  

A Binance spokesperson told MarketWatch: “We are grateful for President Trump’s leadership and his commitment to making the United States the world’s cryptocurrency capital.”  

## The Road Back to the U.S.: Opportunities and Regulatory Hurdles  

The pardon has opened up possibilities for Binance to re-enter the world’s largest capital market.  

Ian Weisberger, CEO of crypto algorithmic platform CoinRoutes, believes that if Binance can resume operations in the U.S., it will open the world’s largest cryptocurrency trading venue to American investors— a move that could “change the rules of the game in the U.S. cryptocurrency market.”  

According to a MarketWatch report, one potential path is for Binance to apply to the U.S. Commodity Futures Trading Commission (CFTC) for registration as a foreign trading commission. Alexander Blume, CEO of crypto trading firm Two Blume, stated that Binance’s return could unlock more liquidity for U.S. institutional investors and introduce greater competition to the market.  

However, the road back will be far from smooth. Seoyoung Kim, a finance professor at Santa Clara University, emphasized in an interview that Binance’s return is “far from guaranteed.” The exchange will still need to apply to both the U.S. Securities and Exchange Commission (SEC) and the CFTC for operational approval, depending on the products it plans to offer.  

## Political Controversy and Scrutiny of Interests  

The pardon is not without controversy. Critics argue that the move may involve a political quid pro quo. Binance is reportedly one of the key backers of World Liberty Finance, a crypto project initiated by the Trump family and supported by Binance itself.  

Mark Hays, Deputy Director of Crypto and Fintech Policy at Washington-based advocacy group Americans for Financial Reform, told MarketWatch that the pardon reflects “corruption from the White House” and “paints a dark picture of undue influence in U.S. politics.” He argued that if Binance does indeed return to the U.S. market, it could signal a growing trend of political favoritism.  

Despite the controversies and regulatory hurdles, Trump’s pardon has undoubtedly added a critical variable to Binance’s future. The market will closely watch whether— and how— this crypto giant can navigate this uncertain path back to the U.S. under the country’s regulatory framework.  

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